World News
Euronav Posts Strongest Q3 Since 2008 as Buoyant Tanker Market Makes a "Very Strong" Start to Winter
Euronav NV (Euronav) [EBR:EURN] says it has posted the strongest third quarter since 2008, with $135.9 million EBITDA, adding that it expects positive tanker market conditions to continue following a "very strong" start to the winter market.
The company posted a $72.2 million net profit during 2015's third quarter, compared to the $20.6 million loss it recorded during the same period of 2014, and notes that, through comparison of the same two periods, VLCC earnings on the spot market are up 112 percent in this year's Q3
"The positive thesis for the tanker sector started in early 2014 continues to evolve as expected," said Paddy Rodgers, CEO of Euronav.
"The four key drivers of our business: robust demand for crude oil, moderate vessel supply, high supply of oil and continued ton-mile expansion - all delivered further gains in what is usually a seasonally weak quarter."
Euronav asserts that the freight market has demonstrated buoyancy even in the face of outside challenges.
"This resilience of the thesis was demonstrated with a strong recovery in the freight market after a number of external factors simultaneously impacted the market during August," Euronav's analysis explained.
Overall, the company says that the strength of the market, which it reports has now seen cargo rates hit a seven-year high already within the current quarter, will continue for years to come.
"Traditionally, the third quarter is seasonally the weakest during the tanker calendar year. However, 2015 saw the average Q3 rates for VLCC and Suezmax broadly in line with Q1 and Q2 and specific cargo rates have hit a seven-year high in the early part of Q4," stated Euronav.
"This reflects the strong fundamentals that underpin the crude tanker sector currently and which Euronav believes has structural support to drive the market for several years".
In April, Euronav said that the group's outlook for the tanker market in 2015 was looking promising.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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